HomeMy WebLinkAboutCSD-18-092 - KW Gymnastic Club Air Conditioning System Loan AgreementREPORT TO:Community and Infrastructure Services Committee
DATE OF MEETING:June 18, 2018
SUBMITTED BY:Kim Kugler, Director of Sport, 741-2200 ext. 7544
PREPARED BY:Bob Cheyne,Manager of Sport Development and Golf
741-2200 ext. 7689
WARD (S) INVOLVED:Ward8
DATE OF REPORT:May 30, 2018
REPORT NO.:CSD-18-092
SUBJECT:KW Gymnastic Club Air Conditioning System Loan Agreement
___________________________________________________________________
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute an agreement with the Kitchener-
Waterloo Gymnastics Club (an affiliated minor sport group) to provide an interest free
ning
space located at the Twin Cities Gymnastics/Judo Training Centre, 805 Victoria Street
South, Kitchener, said agreement to be to the satisfaction of the City Solicitor.
BACKGROUND:
The K-W Gymnastics Club (the Club) is an incorporated not-for-profitaffiliated minor sport group
th
that celebrated their 50anniversary in 2017. With approximately 3,000 registrants annually, the
Club provides a range of programs from an introductory to competitive level helping children
achieve their athletic and physical fitness goals in a safe, fun and friendly environment.
In 1990, the City of Kitchener and the City of Waterloo entered into an operation agreement with
the Kitchener-Waterloo Gymnastics Club and the Asahi Judo to build and operate the facility
known as the Twin City Gymnastics/Judo Training Centre. The operating agreement describes
the responsibilities as to whom is to bare the costs of capital and operating improvements. The
installation of air conditioning system and the additional utility costs to operate the system would
be at the expense of the Club.
The KW Gymnastics Club has for many years provided summer camps and programs. For
these prosperous summer programs to continue the Club needs to respond to the requests from
their coaches and athletes to provide a cooler facility by adding air conditioning.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
4 - 1
REPORT:
The KW Gymnastics Club approached the City of Kitchener with a request for an interest free
loan to assist them with covering the upfront costs of the installation of an air conditioning
system. The Club has provided project quotes identifying costs ranging from $110,000 to
$150,000.
The KW Gymnastics Club currently has $75,000 they can draw from their reserve account to
contribute to the air conditioning system and is requesting an interest free loan from the City of
Kitchener ranging from $35,000 to $75,000. The final loan amount will be confirmed once the
quotes are finalized. The Club is committed to paying back the loan within four (4) years, making
monthly payments equalling a repayment to the City of $17,000 to $20,000 annually. To date
the Club has collaborated with and provided all the necessary financial information requested
them in making the which they annually contribute to the City in the upcoming years
Staff from Sport Development, Facilities Management and Financial Planning have reviewed
and are supportive of this request.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the
through the delivery of core service.
FINANCIAL IMPLICATIONS:
Facilities Management(FM)has a capital account assigned to the Twin City Gymnastics/Judo
Training Centre to manage the capital projects the City is responsible for. This capital account
receives funding of approximately $25,000 per year and currently has a balance of $40,000.
Staff propose loaning the KW Gymnastics Club their requested amount from the FM capital
account. Any deficit created by the loan or by required City spending on its capital costs related
to the building would be short-lived and would be funded by planned annual funding identified in
the capital forecast and by loan repayments from the KW Gymnastics Club.
COMMUNITY ENGAGEMENT:
INFORM This
committee meeting.
ACKNOWLEDGED BY: Michael May, GM/DCAO, Community Services
4 - 2